’How will we withdraw…’: Hundreds of account holders outside New India Co-operative Bank after RBI imposes restrictions

The Reserve Bank of India (RBI) has enforced a six-month transaction ban on New India Co-operative Bank in Mira Road East, Mumbai citing irregularities in its lending practices. In response to the RBI’s overnight order, hundreds of account holders rushed to the bank’s branch to access their accounts. The large turnout prompted authorities to deploy heavy police security at the bank.

The RBI issued a notice to halt all business at the bank’s branch in Maharashtra. Bhupendra, a customer of the New India Co-operative Bank, told news agency ANI, “I have been standing in line for two hours… How will we withdraw our money if there’s an emergency?… The bank told us that we could withdraw money from the locker. For the rest, there’s a six-month waiting period for getting our own money back… There need to be certain measures where customers are not taken for granted.”